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Hotline Sample Report

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10/3/2022 9:56:17 AM Eastern Time

Hoping the Worst Is Over
By Charles Payne, CEO & Principal Analyst

 Click here to download PDF version

It was a rough week as they took a bite out of Apple (AAPL) in a move some say could mark the beginning of the end of this deadly bear market.  The carnage has been great, and underreported, and it has been going on a year since the wheels came off.  The best thing I could say about last week is the internals improved the last couple of sessions from unmitigated disaster to disaster, as new lows went from 1,100 to just 480.

Also, the closing action the last few sessions all had a feeling of selling climaxes and lots of fear about holding into the weekend.  Some of that came from speculation about Credit Suisse (CS), which spiked over the weekend.  I’m not sure if there is a contagion effect – I actually would like to see banks live with same failure as everyone else does and not get bailout under the guise it’s for the common good.

Chart

Heal Map

Last week was all about the bites taken out of Apple with oil companies edging higher and some health care names finishing in the green.

 S&P 500 Map

On Friday, ten of eleven sectors finished the session lower.

Worse Days behind Us?

Historically, September 30th is the bottom of the market in midterm years. In fact, it was the exact bottom in 1974 and 2002.

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There is very intriguing action in the ten-year yields, which are picking up speed to the downside after that parabolic spike to 4.0% last week.

Lots of data out this week, including the jobs report – hold on to your hats.

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Portfolio Approach

We are going long a new position in Technology this morning in our Energy Model Portfolio.

TableDescription automatically generated

Long Idea: Comstock Resources, Inc. (CRK) @ $18.00
Industry: Energy; Oil & Gas
Click here to view the trading alerts that followed this recommendation

Trading Parameters
Status Closed
Entry Price$18.00
Entry Limitsee comments
Stop LossN/A
Target$21.60

BACKGROUND: Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas primarily in North Louisiana and East Texas, the United States. As of December 31, 2021, the company had 6.1 trillion cubic feet of the natural gas equivalent of proved reserves. It also owns interests in 2,557 producing oil and natural gas wells. The company was incorporated in 1919 and is headquartered in Frisco, Texas.

SKINNY: The latest reduction in gash imports should support further development of LNG export terminals near Comstock's acreage. The company has strong positioning to services growing LNG demand through its Haynesville Shake area. Estimates have been consolidating and technically the stock has been able to fill September's gap. Our target $21.60.


Key Fundamentals
PEG  0
Book Value  5.45
Institutional Holdings  35.28
Price/Sales  2.18
Average Daily Volume  3.54M
Shares Outstanding  233.16M
Market Value  4.23B
Insider Activity  30 Buys
52-week High  22.11
52-week Low  6.88
Annual Earnings Estimate  5.18

Analyst Coverage
 KeyBanc Capital Initiated  Overweight
 Piper Sandler Upgrade  Neutral
 Citigroup Resumed  Buy



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